"(The Cabinet gave its) ...ex post facto approval for the Memorandum of Understanding (MoU) on collaborative research on distributed ledger and blockchain technology in the context of development of digital economy by Exim Bank," an official statement said.

Blockchain is a digitised, decentralised ledger to record real-time transactions across borders. Distributed ledger is a database held and updated independently by each participant in a large network across multiple sites, institutions or geographies.

"Distributed ledger/blockchain technology holds potential for solutions to various challenges faced in the financial sector by BRICS nations," it said.

The MoU aims for a better understanding of the technology through joint research. It will identify areas within respective business operations for potential applications to enhance the operational efficiencies, the statement said.

The Xiamen Declaration signed in China on digital economy by the BRICS leaders had highlighted the importance of the digital economy and how the BRICS nations could leverage the thriving digital economy to boost global economic development.

--IANS

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